Headlines that Matter for Companies and Executives in Regulated Industries
Pharmaceutical Company Agrees to Pay $12.6 Million to Settle FCA Allegations Involving Kickbacks
On Tuesday, the Department of Justice announced a $12.6 million settlement with Incyte Corporation, a Delaware pharmaceutical company, to resolve False Claims Act allegations relating to Incyte’s drug Jakafi, a drug approved to treat myelofibrosis. The
qui tam claims were brought by a former compliance executive at Incyte, who will receive approximately $3.59 million of the recovery.
According to the government, between November 2011 and December 2014, Incyte allegedly pressured an independent foundation to pay copays of Medicare and TRICARE beneficiaries using Jakafi who were ineligible for fund assistance because they did not have myelofibrosis. The government further alleged that an Incyte contractor assisted ineligible beneficiaries in completing and submitting applications to the fund for copay assistance. The Anti-Kickback statute prohibits a pharmaceutical company from offering or paying any remuneration to induce a federal beneficiary to purchase its drugs, including payment of copay obligations.